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Home > Blog > Disability Insurance > Principal Physician Disability Insurance Review (Updated 2024)

Principal Physician Disability Insurance Review (Updated 2024)

Male surgeon holding a scalpel over patient
Overall Rating
4.5
out of 5
Financial Strength
4.5/5
Definition of Disability
5/5
Affordability
4.5/5
Ease of Application
4.5/5
Claim Process
4.5/5
Available Riders
4/5

Product Name

HH750

Maximum Monthly Coverage

$35,000

Benefit Periods

2 year, 5 year, to Age 65, Age 67 and Age 70

Definition of Disability

Principal’s base policy provides own-occupation coverage with limitations on the insured’s ability to work while being disabled. Applicants can add Principal’s Regular Occupation Rider which allows policyholders to be disabled in their specialty while still working in another occupation and earning income.

Principal Logo
the standard logo
Our Rating
A.M Best Rating
A+
A++
A
Maximum Monthly Coverage
$35,000
$30,000
$30,000
Own Occupation Coverage
Maximum Benefit Period
Age 70
Age 70
Age 67
Rating: 4.5/5.0
  • Legal Name:Principal Life Insurance Company
  • Year Founded:1879
  • Headquarters:Des Moines, IA
  • CEO:Daniel J. Houston
  • A.M. Best Rating:A+
  • Ownership Structure:Stock
  • Distribution Channels:Independent
  • Fortune 500/1000:No. 256

Principal defines total disability as you not being able to work your primary job.

 

What Is Principal Financial Group?

Principal Financial Group is a global financial investment management and insurance company headquartered in Des Moines, Iowa, U.S.A. It was founded in 1879 as an insurance company, but today is on the Fortune 500 under the umbrella of “investment management leader.” The company does indeed have four primary business units: Retirement and Income Solutions, Principal Global Investors, Principal International, and U.S. Insurance Solutions. Principal employs over 15,000 people worldwide.

With over 140 years of experience, Principal has emerged as a global leader in the insurance industry. The company offers a range of insurance products, including life, disability, and retirement savings protection. Their reputation for excellence is reflected in their impressive ratings, such as an A+ rating from the Better Business Bureau and a Superior rating from A.M. Best.

In 2019, Principal purchased Wells Fargo’s institutional retirement business, including 401k, pension, asset advice, etc. for $1.2 billion. Then, in 2021, activist investor firm Elliott Management Group took a stake in Principal, pushing for changes. Luckily for Principal, the two parties agreed on two new directors and business went back to usual. LeverageRx has a close relationship with Principal and find their disability insurance product for physicians to be one of the better policies out there. Read on to learn more.

 

Principal Physician Disability Insurance Highlights

Principal’s disability insurance policy, HH750, is underwritten and issued by Principal Life Insurance Company. In this section we are going to review the biggest things to look for when purchasing disability insurance.

Principal’s Individual Disability Income Insurance is a comprehensive policy designed to provide financial protection in the event of injury, illness, or disability. With this policy, physicians can rest assured that their income will be protected, even if they are unable to work. The monthly benefits can be used to cover essential living expenses, such as mortgage payments, car payments, utilities, and student loan debt.

Own-Occupation

When buying disability insurance, you need to know how the insurance company defines “disabled.” At Principal, their occupation rider defines total disability as being unable to perform the material and substantial duties of your occupation, even if you can work in another field. Principal also offers a modified own occupation, which defines total disability as being unable to do your job and being able to work in another field but unwilling to do so.

It’s essential to note that Principal’s definition of true own-occupation varies slightly from other providers. Their policy states that there must be no reasonable job or worksite modifications that would enable you to perform your own occupation. While this may introduce some additional considerations, it still aligns with the true own-occupation standard that physicians seek.

Non-Cancellable or Guaranteed Renewable

A non-cancellable disability insurance policy means the insurance company can’t cancel, increase your premiums or reduce your benefits as long as you pay the premiums. The disability insurance policy at Principal is non-cancellable and guaranteed renewable to age 65.

Benefit Period

The benefit period is an option that comes with every policy. It is asking you up until what age do you want to receive payments should you fall ill or have an accident? The duration of the benefit period affects the price of the premium because the longer the benefit period, the greater the insurer’s risk. At Principal, you have a benefit period until the age of 70. You can also choose benefit periods to age 67 or 65, as well as benefit periods of two years or five years.

Elimination Period

The elimination period is the length of time between the start of an injury or illness and the time the insurance company pays you your benefits. You can purchase coverage with 30-day, 60-day, 90-day, 180-day, and 365-day elimination periods.

Mental Disorders

Principal has a 24-month limit for mental and nervous disorders using their own-occupation definition of disability.


 

Principal Physician Disability Insurance Riders

Anyone who buys physician disability insurance has the option to add riders which are provisions to give you extra benefits depending on your situation. Most riders come with an added cost, but it depends on the insurer.

Cost-of-living Adjustment (COLA) Rider

A COLA rider ensures that your benefits keep up with inflation. Principal’s COLA benefit is increased on a compound basis instead of simple. They offer a 3% or 6% COLA maximum. Upon returning to work full time, you keep any increased disability benefit without having to provide evidence of good health.

Residual Disability Rider

Principal offers a partial disability benefit called “residual disability.” If you become partially disabled, meaning you can perform some functions and not others, you will still receive full benefits. At Principal, in order to qualify as residually disabled:

  • A loss of earnings of at least 20%; AND
  • The inability to work full time and perform the duties of your occupation
  • If you qualify, you will be paid 100% of your policy’s benefit for total disability if your loss of earnings exceeds 75%
  • For earnings losses of less than 75%, you will receive a benefit proportional to your loss of pre-disability income

Principal’s residual disability rider will give you a minimum of 50% of your policy’s monthly benefit for total disability for the first 6 months of residual disability. You will receive 50% of the policy’s monthly benefit for total disability if you are retired or are unemployed.

Catastrophic Disability Rider

This rider provides additional benefits in the event you are unable to perform at least two of the six activities for daily living, or you require “substantial supervision due to severe cognitive impairment.”

Insurance language can be confusing. Click here and schedule a call with LeverageRx’s disability insurance specialist. He will answer your questions and explain the differences in policies for FREE.


 

Principal Physician Disability Insurance Alternatives

Guardian

Guardian has the best definition of total disability. To be considered totally disabled and receive full benefits, you must not be able to work the medical specialty you went to school for. However, even if you can work somewhere else, Guardian will pay you full benefits since the new job is not your specialty.

Learn More: Guardian Disability Insurance Review

MassMutual

MassMutual has a great COLA rider which guarantees an increase to the benefit every year. By the 6th year, the MassMutual COLA rider increases the payout by 16%! That said, their own-occupation is weak. If you can work at all, then MassMutual pay not pay you full benefits.

Learn More: MassMutual Physician Disability Insurance Review

Ameritas

The great thing about Ameritas disability insurance products for physicians is they consider your medical specialty to be your own-occupation, thus it is included by default. So even if you can work in another occupation after your disability, Ameritas will still pay you full benefits.

Learn More: Ameritas Disability Insurance Review


 

Is Principal Disability Insurance Right for you?

Reading insurance policies is boring and hard to understand. How do you know which one is right for you? LeverageRx’s in-house specialist can hop on a call to answer your questions if you fill out this form. In the meantime, here is what is included in Principal’s disability insurance policy base (meaning no extra charge):

Benefit update rider. Available for no additional premium, this rider allows you to increase policy benefits every three years up to the maximum issue and participation limits, up to age 55, without medical evidence of insurability. Principal offers advanced options on this rider, enabling the insured to take the option early with the loss or reduction of your group long-term disability plan or at least a 50% increase in sustainable earnings.

Future benefit increase rider. Available for no additional premium and renewable every six years. The increases are based on the Consumer Price Index with a minimum of 4% compounded and a maximum of 10% compounded. In addition to the CPI increase, the insured may also be eligible for an additional benefit increase if eligible based on financial information. When combined together, the CPI increase and the additional benefit increase cannot be greater than $500.

Presumptive total disability benefit. The policy will waive your elimination period if you sustain a total loss of at least one of the following: sight, hearing, inability to use hands or feet. The loss is not required to be permanent and the elimination period would be waived even if you are able to work.

Serious illness benefit. For no additional premium, this rider provides a one-time lump sum benefit equal to six times the policy’s ultimate monthly benefit, in addition to the other benefits provided by the policy, if the Insured becomes disabled under the policy and diagnosed with coronary artery bypass graft surgery, cancer or stroke.

 

Key Takeaways

Principal offers an excellent solution for physicians seeking comprehensive and reliable long-term disability coverage. With its true own-occupation definition of disability, built-in benefits, and a range of optional riders, Principal provides flexibility and peace of mind to physicians. The company’s reputation for financial stability and customer satisfaction further solidifies Principal as a top choice for physicians looking to protect their financial future.

Principal understands the unique needs and challenges faced by physicians and offers tailored coverage to meet those needs. By choosing Principal Physician Disability Insurance, you can rest assured that your financial well-being is protected, allowing you to focus on what matters most: providing exceptional care to your patients. To see your options with Principal, request your quotes today.

Who Offers Disability Insurance for Physicians?

Filter
6 companies match your search
States
BBB Rating
A.M. Best Rating
Corporate Structure
Company
A.M. Best Rating
Definition of Disability
Future Increase Option
Residual Benefit
States Available In
AMA
A.M. Best Rating N/A
Definition of Disability N/A
Future Increase Option N/A
Residual Benefit N/A
States Available In Available in 55 states. (View States)
States Available
  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Canal Zone
  • Colorado
  • Connecticut
  • Delaware
  • District of Columbia
  • Florida
  • Georgia
  • Guam
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Puerto Rico
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virgin Islands
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming
Ameritas_Logo_mqinpj Ameritas
A.M. Best Rating A
Definition of Disability Own-Occupation Definition
Future Increase Option Available annually to age 55
Residual Benefit Requires 15% loss of income
States Available In Available in 51 states. (View States)

Ameritas Life is as reputable as any name in the insurance industry. However, it’s actually a newcomer to the disability insurance space in comparison to its competitors. DInamic Foundation is its best disability insurance product for doctors. Policies are underwritten and issued by Union Central Life, its wholly-owned subsidiary.

Ameritas features a true own-occupation definition of disability. This provision benefits you if an accident or illness prevents you from practicing your specialty.

DInamic Foundation requires you to choose between non-cancelable coverage and guaranteed renewal. The maximum benefit period available is to age 70. Ameritas offers basic and enhanced residual disability riders. It also offers two different COLA riders.

    Pros
  • True own-occupation provision.
  • Lowest premium amount.
  • Two COLA rider and residual disability options.
  • Various add-ons such a good health benefit, presumptive total disability benefit, COBRA premium benefit, partial disability benefit, and non-disabling injury benefit.
    Cons
  • Slower customer service.
  • Lowest maximum policy benefit: $20,000 per month.
  • Must choose between non-cancelable coverage and guaranteed renewal.
  • For certain occupation classes, the own-occupation provision is only available for five years.
States Available
  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • District of Columbia
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming
Guardian
A.M. Best Rating A++
Definition of Disability Own-Occupation Definition
Future Increase Option Available annually up to age 55
Residual Benefit Requires 15% loss of income
States Available In Available in 50 states. (View States)

As one of the largest, most trusted mutual insurance companies in America, Guardian Life is the Cadillac of its industry. Its disability insurance product, ProVider Choice, is a great fit for doctors. Policies are underwritten and issued by Berkshire Life, a wholly-owned stock subsidiary.

According to Guardian, total disability occurs when injury or illness prevents you from performing your occupation. For doctors, more than half of your income must come from hands-on patient care or surgical procedures to qualify.

Guardian’s true own-occupation definition of disability guarantees full benefits. It still applies if you’re able to maintain gainful employment in another occupation. In fact, you may be able to benefit if you can still practice your specialty with major limitations.

Coverage is non-cancelable and guaranteed renewable to age 70. You may elect 10-year, five-year and two-year benefit periods. Guardian offers 30-day, 60-day, 90-day, 180-day, 360-day and 720-day elimination periods.

Unlike other providers, Guardian features three cost-of-living adjustment (COLA) rider options. As for residual disability, Guardian offers both basic and enhanced partial riders.

    Pros
  • True own-occupation provision.
  • Highest COMDEX score: 99.
  • Highest maximum policy benefit: $20,000 per month.
  • Simplified underwriting for up to $7,500.
  • Various options for benefit and elimination periods.
  • Various options for COLA and residual disability riders.
  • Various add-ons such as an automatic benefit enhancement, benefit purchase option, catastrophic disability rider, hospice care benefit, serious illness supplemental benefit and student loan protection.
    Cons
  • Highest premium amount.
  • No presumptive total disability benefit.
States Available
  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • District of Columbia
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming
massmutual-physician-disability-insurance_zalsic MassMutual
A.M. Best Rating A++
Definition of Disability Own-Occupation Definition
Future Increase Option Available annually up to age 55
Residual Benefit Requires 15% loss of income
States Available In Available in 50 states. (View States)

MassMutual has been a mainstay in the insurance game since 1851. MassMutual offers two disability insurance products, Radius and Radius Choice. Both feature provisions and add-ons that allow you to customize your coverage to meet specific needs. MassMutual helps you protect your income and retirement without relinquishing payment control.

MassMutual features a true own-occupation definition of disability. However, the provision is not part of your base policy. You must purchase it as an additional rider. With this provision in place, ‘total disability’ occurs when you cannot perform the main duties of your occupation. This requires you to be under a physician’s care.

Both Radius and Radius Choice are non-cancelable and guaranteed renewable to age 65. Radius is conditionally renewable for life, while Radius Choice is only until age 74. Both policies have benefit periods available to ages 65 and 67, as well as two years, five years and 10 years. Radius Choice also offers a maximum benefit period to age 70. Both policies offer elimination periods of 60 days, 90 days, 180 days, one year and two years.

MassMutual offers one cost-of-living adjustment (COLA) rider. After your first year of disability, your monthly benefit increases by a set percentage each year. MassMutual offers one option with basic criteria that increases your chance of qualifying.

    Pros
  • True own-occupation provision.
  • Various add-ons such as an automatic benefit enhancement, catastrophic disability rider, future increase option, presumptive total disability benefit and student loan protection.
    Cons
  • Own-occupation provision sold separately.
  • Only one COLA rider and residual disability rider option.
  • No benefit purchase option, hospice care benefit or serious illness supplemental benefit.
States Available
  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • District of Columbia
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming
Principal Logo Principal
A.M. Best Rating A+
Definition of Disability Own-Occupation Definition
Future Increase Option Future Increase Option
Residual Benefit Requires 20% loss of income
States Available In Available in 50 states. (View States)

Principal Life is among the most competitive providers in the disability insurance market. HH750 is an excellent option for doctors seeking a top-shelf disability insurance product. It features a wide variety of options that afford you maximum flexibility.

Principal Life is among the most competitive providers in the disability insurance market. HH750 is an excellent option for doctors seeking a top-shelf disability insurance product. It features a wide variety of options that afford you maximum flexibility.

Principal offers both a true own-occupation and a modified own-occupation provision. A true own-occupation provision is the best bet for highly-skilled individuals like doctors. You benefit if you become unable to perform the material and substantial duties of your specialty. It still applies if you can maintain gainful employment in a different occupation.

Modified own-occupation is a watered-down version of the former. Frankly, it’s only feasible if you’re cost is a concern. The definition of disability is the same, but you will not benefit if you can fulfill another occupation. Either way, both provisions are available as part of your base policy. You do not have to purchase an additional rider.

HH750 is non-cancelable and guaranteed renewable to age 65. Benefit periods are available to ages 65, 67 and 70, and for two years and five years. Principal features 30-day, 60-day, 90-day, 180-day and one year elimination periods.

Principal offers one cost-of-living adjustment (COLA) rider. After selecting a maximum benefit between 3-6%, it increases on a compound basis. Principal also offers one partial residual disability rider.

Modified own-occupation is a watered-down version of the former. Frankly, it’s only feasible if you’re cost is a concern. The definition of disability is the same, but you will not benefit if you can fulfill another occupation. Either way, both provisions are available as part of your base policy. You do not have to purchase an additional rider.

HH750 is non-cancelable and guaranteed renewable to age 65. Benefit periods are available to ages 65, 67 and 70, and for two years and five years. Principal features 30-day, 60-day, 90-day, 180-day and one year elimination periods.

Principal offers one cost-of-living adjustment (COLA) rider. After selecting a maximum benefit between 3-6%, it increases on a compound basis. Principal also offers one partial residual disability rider.

    Pros
  • True and modified own-occupation provisions.
  • Advisor’s Choice Award for advisor support.
  • Available to those who only work 20 hours a week.
  • Simplified underwriting for up to $6,000 per month.
  • Various add-ons such as a benefit update rider, catastrophic disability rider, future benefit increase rider, presumptive total disability benefit, and serious illness benefit.
    Cons
  • The modified own-occupation provision can be misleading. It can save you money now, but you will not receive as strong of benefits as true own-occupation.
States Available
  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • District of Columbia
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming
the standard logo The Standard
A.M. Best Rating A
Definition of Disability Own-Occupation Definition
Future Increase Option Available annually up to age 55
Residual Benefit Requires 20% loss of income
States Available In Available in 50 states. (View States)

The Standard is among the largest, most trusted providers in the disability insurance space. The company has several options, but Platinum Advantage is the most beneficial for doctors. It features built-in provisions and additional riders that maximize income protection.

The Standard’s true own-occupation definition of disability is available as an additional rider. With this provision in place, ‘total disability’ occurs when you are unable to perform the substantial and material duties of your specialty. You must also be under the care of a physician to qualify.

Platinum Advantage is guaranteed renewable to age 67. To make your policy non-cancelable, you must purchase an additional rider. Benefit periods are available to ages 65 and 67, as well as two years, five years and 10 years. Elimination periods of 60 days, 90 days, 180 days and one year are available.

The Standard offers one cost-of-living adjustment (COLA) rider. After selecting a maximum benefit between 3-6%, it increases annually on a compound basis according to the Consumer Price Index. The Standard offers a basic residual disability rider.

    Pros
  • True own-occupation provision.
  • Wide variety of options and strong coverage guarantee.
  • No-cost riders and benefits, such as the family care benefit.
  • Various add-ons such as an automatic increase benefit rider, benefit increase rider, catastrophic disability rider, family care benefit, premium waiver benefit, presumptive total disability benefit, student loan rider and survivor benefit.
    Cons
  • Own-occupation and non-cancelable riders sold separately.
  • Only one COLA rider and residual disability rider option.
  • Lowest COMDEX score: 79.
States Available
  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • District of Columbia
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming
No companies match your search.